Pioneer Foods has made a move to acquire KWV

Pioneer Foods has made a move to acquire KWV

South African food group Pioneer Foods is looking to buy KWV, one of the country's largest wine and spirits makers.

Pioneer, which operates in sectors from bakery to poultry, said it had contacted KWV about a possible takeover of the company.

"Shareholders of Pioneer Foods and KWV Holdings are advised that Pioneer Foods has approached KWV Holdings with the view to possibly acquire KWV Holdings or concluding a similar transaction," Pioneer said on Friday (29 October).

"There can be no certainty that these discussions will lead to a transaction. If successfully concluded, the proposed transaction may have a material effect on the Pioneer Foods and KWV Holdings share prices."

It was not immediately clear whether any acquisition would include the 30% stake KWV has in South African wine giant Distell.

Back in November 2004, KWV sold its 25% share in Ceres Fruit Juices to Pioneer, giving the food company full ownership of South Africa's biggest long-life fruit juice producer.